Turkish Labor Law
“Civil servant monthly coefficient” determining the income tax exemption for child and family benefits has been announced. The coefficient is determined as 0.154461 for the second half of 2020.
Child and family benefits are actually government-sponsored additional payments to public employees. Some of the exceptions applied to public employees’ payrolls over these payments have also been extended to the private sector.
The cash benefits that employers regularly provide to their workers under the name of “Family Benefit”, “Family Benefit”, “Child Benefit”, “Child Hike” or “Child Benefit” are subject to exemptions in SSI and income tax.
Child and Family Benefits in Terms of Income Tax
It is the civil servants monthly coefficient that determines the amount to be exempted from income tax for child and family benefit payments. This amount is determined twice a year, at the beginning of the year and in the middle of the year.
Child hike income tax exemption is applied in two amounts depending on the age of the child; for children under and over 6 years old.
| Child Hike Income Tax Exemptions | ||
| 01.01.2020 – 30.06.2020 | 01.07.2020 – 31.12.2020 | |
| For children over 6 years old | 36,52 TL | 38,62 TL |
| For children under 6 years old | 73,03 TL | 77,23 TL |
| Family Benefit Income Tax Exemptions | ||
| 01.01.2020 – 30.06.2020 | 01.07.2020 – 31.12.2020 | |
| Public workers | 332,00 TL | 351,09 TL |
If desired, the employer can pay family and child benefits to all workers; however, workers need to comply with certain conditions. For example, for a family allowance exception, the worker must be married and the spouse must not work. Child allowance only applies to workers with children they’re obliged to look after. Only one spouse can benefit from the exception for the same child.
